Organizational Behavior

Topics: Social capital, Human capital, 21st century Pages: 3 (1012 words) Published: October 14, 2012
1. What role, if any, does McGregor’s Theory Y play at Whole Foods? Explain.

“McGregor believed managers could accomplish more through others by viewing them as self-energized, committed, responsible, and creative beings” (Kreitner & Kinicki, 2013, p. 9). Mackey believes that if his employees are happy, customers will be happy, which in turn will make investors happy. Therefore, nobody is losing because each person can be satisfied and get his or her “piece” of the pie. Based on how Mackey describes his managers, it seems that he truly is looking for creative managers who will lead employees to deliver the best outstanding customer service to consumers. Mackey hires managers who will de dedicated to both Whole Foods customers and employees. Mackey also made it a point to state that training is an important factor in achieving success on all levels. Clearly, this all relates to McGregor’s Theory Y.

2. How does Whole Foods build human and social capital?

Social capital is described as “the productive potential of strong, trusting, and cooperative relationships” (Kreitner & Kinicki, 2013, p. 15). Whole Foods clearly builds strong social capital by hiring managers that are dedicated to serving the organization. By hiring managers who enjoy their job as opposed to simply just going to their job because it is part of their life, managers have an easier job building relationships with their employees. If managers show employees that they are happy and motivated to come to work every day and do an outstanding job, then employees will enjoy coming to work and working for their managers. Teamwork plays an important role at Whole Foods and this is all part of building social capital.

Human capital is defined as “the productive potential of one’s knowledge and actions” (Kreitner & Kinicki, 2013, p. 15). Whole Foods displays its commitment to building human capital by training employees to be the best that they can be. I do see, however, that Mackey does not...
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